When Deciding to Add Capacity to a Factory, Which of the Following

question 7

Multiple Choice

When deciding to add capacity to a factory, which of the following need not be considered?

• A) Maintaining system balance
• B) The frequency of capacity additions
• C) Use of external capacity
• D) Immediate product demand
• E) Availability of raw materials

Explain the selection process of Administrative Law Judges (ALJs).

Understand factors considered in the administrative process for adopting new rules.

Describe the role of judicial review in relation to administrative agencies.

Compare the adjudication process in administrative hearings with the judicial process.

---

Definitions:

Elastic

A characteristic of a demand or supply curve that indicates a high sensitivity to changes in price.

Price Ceiling

A legally imposed maximum price on a good or service, typically set below the market equilibrium, leading to shortages.

Marginal Revenue

Marginal revenue is the additional income that is gained from selling one more unit of a good or service.

Marginal Cost

The change in the total cost that arises when the quantity produced is incremented by one unit.